ESU former executive Sanders under a microscope (with video)

Friday

Feb 20, 2009 at 12:01 AM

EAST STROUDSBURG — The board that oversees the private East Stroudsburg University Foundation has commissioned an in-depth, forensic audit of its finances in the wake of explosive allegations made against its former executive director.

DAN BERRETT

EAST STROUDSBURG — The board that oversees the private East Stroudsburg University Foundation has commissioned an in-depth, forensic audit of its finances in the wake of explosive allegations made against its former executive director.

"The board of directors of the East Stroudsburg University Foundation voted to engage an independent certified public accounting firm to conduct a forensic audit of the foundation's books and records," said Isaac Jamison, chair of the foundation, reading from a tersely worded statement after a three-hour, closed-door meeting Thursday night.

"The board took this action in response to allegations of irregularities in the use of foundation assets made against its former executive director," said Jamison, flanked by several members of the board.

A forensic audit can be used as evidence in court proceedings. It is meant to prove whether fraud or misappropriation occurred, and auditors can subpoena personal bank accounts and check records against outside sources.

The decision to conduct the forensic audit came nearly a week to the day after an explicit civil complaint was filed in Monroe County. One current and five former ESU students alleged that Isaac Sanders, the former vice president of advancement for the university and executive director of the ESU Foundation, pursued unwanted sex with them — including genital groping and oral sex — and that school officials covered up his alleged crimes.

Detailed in the complaint are allegations that Sanders used money for tuition and gifts to help pave the way for his efforts at intimacy. He also purportedly gave the plaintiffs money for food, prescription glasses, rent, car repairs, a suit jacket and Tommy Hilfiger underwear, as well as jobs at the office he ran.

The suit names Sanders as a defendant, as well as Robert Dillman, ESU's president; Kenneth Borland, its provost and vice president for academic affairs who filled in for Dillman while he was on sabbatical last year; Victoria Sanders, associate vice president for diversity and equal opportunity (and no relation to Isaac Sanders); and the trustees of the university. It also names ESU as an institution.

The ESU Foundation and its board were not among the defendants.

The six male plaintiffs are identified by initials, and alleged that the sexual harassment took place over more than four years.

As executive director of the foundation, Sanders managed assets of more than $17 million.

Sanders was reportedly fired in October in the midst of an investigation by the Pennsylvania State System of Higher Education into allegations of sexual and financial impropriety. PASSHE officials have not commented in the past week on whether or not that investigation is still under way.

The foundation raises money on behalf of the university, including the $41 million Hoeffner Science and Technology Center. Last year, it awarded more than $545,000 in scholarships.

Thursday's statement marked the first public comment by the volunteer leadership of the foundation since it issued a statement in December.

At that time, the foundation's executive committee declared that its audit "did not disclose any evidence of any misdealing, theft or fraud in connection with the financial statements reviewed." The title of the statement was "ESU Foundation's Money is Safe."

But audits of the kind that the foundation originally commissioned do not look for evidence of wrongdoing. Moreover, the confidential cover letter for that audit described breaches of policy over payment of scholarships and reimbursements of staff.

Thursday's vote to engage a firm to conduct a forensic audit is the first formal action on that front since the former chair, Joe Heverin, said in an August interview that the foundation would probe the finances as deeply as necessary to get to the truth.

Heverin no longer serves as the chair and does not appear on any foundation documents as a board member, though he is said to still be on the board. He was not in attendance Thursday.

It is not yet known how far back in time the just-commissioned forensic audit will investigate, how long it will take or what firm the foundation will hire.

"The board believes that it is an appropriate and prudent exercise of its duties to independently investigate such allegations," concluded the full written statement.